I just started working and now that I have money I want to know what's the best way to maximize it?

Question

im 19 and I just got a part-time job at UPS. I know it's not much money, but I want to make the most out of what little I got. Anyone got any tips on where I should begin? Your input would be greatly appreciated.

Answer 1

Start with A#1: reduce any debt you have. If you have revolving debt, pay that down. I am hoping that at 19, you don't have much revolving debt. But if you do, pay it down.

#2: Put away about 6 months worth of expenses in a liquid savings account. If you are disabled or out of work, you need to be able to cover your expenses. Be prepared for it.

#3: Put away for retirement. Add to a 401k up until your co will match. Every time. Its free money. If you have a good co match, this moves up to #1.

#4: Roth IRA: This is a post tax contribution to a retirement account, and those returns will be tax free. You will likely pay less taxes today than when you retire. So pay taxes today to take advantage of tax advantages later.

In all cases, your time horizon is very long. You have a life-time to invest. Invest heavily in stocks. There are no bank products (and I am a banker) that are aggresive enough for you. Volatility is not scary if you have a long time horizon. Invest in stocks. And I would go largely international equities instead of domestic ones. US stocks are very mature and have less potential for huge growth.

Bottom line: The fact that you are asking this question makes you a very responsible young man. So congrats. You're going to be a contibutor and not a leech. And you are going to be certain that you are in charge of your own destiny.

Answer 2

A save way to maximize your money is a savings account with a good interest rate. Here you will find more information. http://www.jr-quality.com/ING-Direct/dir...

Answer 3

1) Open up a "Roth IRA", and put 15% of what you make into it.  

That stands for

I ndividual

R etirement

A ccount, created by Senator Roth.

You put the money in, and as long as you don't touch it until you're 59 1/2, it is free to earn as much interest, dividends, and gains (from stock prices going up), as it can in the next 40 years, and all of those gains are TAX FREE.

With the money in the account, buy some good mutual funds.

Anything that's grown by 10%+ averaged over 10 years.

($10,000 turned into $28,000)

Another 10% of what you make should go into a savings account, to ONLY be used in a real emergency, such as if you get fired.

And I cannot emphasize these two enough:

NEVER GET A CREDIT CARD

Broke people have several credit cards and a lot of worthless junk in the closet.

Rich people don't have credit cards; they learned to save up for stuff they want.  A lot of them may still have a lot of junk in the closet, but they're not still making payments on it.

NEVER GET A CAR LOAN OR LEASE

Zero percent interest, Zero months, 100% down.

Watch this:

Answer 4

Invest in their 401k retirement plan.  It's a long term way to amximize your money since your contributions are tax deferred.   Even if you don't end up staying with UPS forever, (though a full time position with UPS can be a financially good move) you can transfer the 401k and its balance with you when you go to another company.  Most corporations offer 401k's so your chances of a healthy 401k is great!   This is the best option for you at your age.  Read up on 401k's so that you will understand its benefits.  Another option is to open up Roth IRA's.  

If your trying to maximize your money quickly so that you can use it, you'll have to have tons of it to start with AND be willing to lose it.  Stocks are real risky, but if you plan on purchasing stocks, go for the stocks that produce the things that you love and the stocks that have been around for ages, ie. Coca Cola, Ford or IBM, just an example.  The stocks that I invest in are affordable.  FRPT, VCLK, CSCO, YHOO, CBRL, HA, MESA.  If you want to start slowly, HTTP://www.sharebuilder.com or choose: Ameritrade.com, E-Trade, Scott Trade etc.  I also invest in a 457 plan similiar to a 401k.  My areas of investments there are with JAVLX, JIGFX, HIACX, HIBCX.  Good idea and by far one of the smarter questions that I have heard today.  Good for you!  Good Luck!!

Answer 5

I would actually look into how much you have to have for a Certificate of Deposit (CD). The reason for this is not the interest rate that you get on it but that there is a penalty for getting you money out early. So it basically makes you hold onto your money. When you get enough saved to satisfy you and you wanna make more look into stocks.

Answer 6

Are you living on your own? Probably not if your working part time. Think long term: retirement: put it into a retirement account at about $25-50 a month talk to a rep that does that in your area our family works with Edwards Jones Investments. You can use anybody that has a good reputation. My son started his at about that age and if its out of your check you will never miss it and you will have a wonderful retirement nest when it comes to needing it in 50 years!!! Start young I wish someone would of told us when we were younger.

Answer 7

Save, save, save. Start by putting money in the bank so you'll have a nice emergency fund. As a part time employee, I don't know if you're eligible for a 401K but as soon as you are and if your employer offers it, sign up. Remember, always live within your means. Do not borrow except to buy a home. Maybe a car after you're on your feet. Good luck.